Economic Thrust Eastwards

[Alternatives Watch]

Alternatives Watch – 30xi09


ECONOMIC THRUST EASTWARDS


Almost three decades after sending its troop into Cambodia, which has
since paid dividends so handsomely, Vietnam makes another strategic
move that will have far-reaching implications for Cambodia. This year
sees a thrust of Vietnamese investments that reaches a total of US$1.5
billion in Cambodian vital sectors: land, natural resources, and
telecommunications.

Vietnam has secured the right to exploit in Block 15 – a 6,900 square
km site off the northeastern shore of Tonle Sap – oil reserves for the
next 30 years, and gas reserves for 35 years. It holds 100 percent
interest in the venture giving Cambodia only an option to obtain later
a share of up to a mere 5 percent. Meanwhile, to sweeten the deal,
Vietnam presents to Cambodia a “social benefit fund” of US$2 million.
There is no mention of how they will address inevitable environmental
damages.

Back on land, Vietnam is to develop 100,000 hectares of rubber
plantations in five Cambodian provinces to be completed in 2015. These
involve land concessions that last almost 100 years – long enough for
any land located close to the border to inconspicuously become part of
Vietnam. The development has already led to a violent clash with
local villagers; more than one thousand families live on the land that
is now part of an 8,000 hectare land concession belonging to
Vietnamese plantation firm Tin Bien.

Vietnam is shrewd in managing its own forests; it protects them and
develops its economy by exporting its deforestation to Cambodia.
Cambodia has become a major source of supplies of illegally logged
wood to help fill a substantial hole left in Vietnam’s local lumber
supply after the government implemented reforestation policies in the
90’s.

Vietnam sets itself up to control a significant chunk of the Cambodian
telecommunication network. Vietnamese military-run telecommunication
corporation Viettel is now the largest telecommunication service
provider in Cambodia – six months after launching its Metfone mobile
service network. Metfone currently accounts for 60 percent of all ADSL
internet services and 50 percent of the fixed phone market; it has two
million mobile subscribers. Vietnam claims its satellite system
Vinasat-1, with its coverage over the Southeast Asia, can meet all the
Cambodian needs ranging from television to internet. The sweetener is
the Viettel’s donation of US$500,000 to help poor Cambodian children
in need of medical treatments; it promises to provide internet
services to 300 Cambodian schools this year. Vietnam agrees to help
build a radio station in Siem Reap the Cambodian government claims it
needs to give the local Vietnamese community a better access to
information. With these benefits, Cambodia puts its national security
that links to its communication network at the mercy of Vietnam.

The economic thrust eastwards will, first and foremost, benefit
Vietnam. Cambodia will also gain; but the extent and nature of long
term costs will be unknown for some time. Meanwhile, the thrust will
divide Cambodian opinions, just like the Vietnamese military
intervention and occupation of Cambodia. The combined impact of the
two major Vietnamese strategies could only weaken Cambodia.


Ung Bun Ang


Quotable Quote”


“An inch of soil is an inch of gold.”

Anonymous.
Vietnamese proverb.